National Vision for Developing a Cocoa Forest REDD+ Program in Ghana
YAW KWAKYE
National REDD+ Secretariat
Manaus, Brazil, June 2013
Introduction
• In 1911, Ghana became #1 global cocoa producer.
• 100 years later, Ghana achieved a production milestone - 1 million metric tons/annum.
• Top producer of premium quality beans
• Ghana’s cocoa sector is a $ 1.5 billion industry.
• But much of sector’s growth has come at the expense of forests.
Cocoa Forest REDD+ Program • High Tech programs started in 2001 to increase yields and boost
national production to 1 million metric tons/annum.
• Results showing promise- achieved target in 2011
• But area under cocoa has doubled (1.8 million ha)
• Yields increasing but still low (- 400 kg/ha)
• Off-Reserve forests gone, Forest Reserves and National Parks are under threat.
• REDD+ program will transform BAU scenario to sustainable, climate-smart cocoa sector.
Desired State Ghana’s 20 year emissions reduction cocoa production system • Program area of 2.5 million ha grouping 16 local districts
• Current national production will be grown on 40% of current land area
• Yields increased by nearly 200+% (400 kg/ha → 1100 kg/ha)
• Farmers retaining and planting shade trees (40% canopy cover)
• Carbon emissions per ton of cocoa produced dropped by 90% (20 tons C / ton cocoa produced to 2 tons C / ton of cocoa produced)
• Reduce threat to Forest Reserves
• New forests and tree cover
Desired State Ghana’s 20 year REDD+ cocoa production system
New Cocoa Product
Ghana to be top global producer of premium quality climate-smart cocoa beans
• Sustainable production system
• Ensuring livelihoods of hundreds of thousands of Ghanaians
Government Interest
• Security of supply
• Long term access to markets
Private Sector
Interest
Forest Resources
HFZ covers 9 million ha
• 2.5 million ha in Forest Reserves
• 6.5 million ha in off-reserve
Forest Reserves degraded
Off-Reserve converted to tree crops & agriculture
Terrestrial carbon stocks
• 7.46 GtCO2e
• Majority in the HFZ
Deforestation & Degradation • No clear numbers on degradation
– 84% of Forest Reserves degraded or worse.
• National deforestation rate estimated at 2.0% nationally
– Losing 135,000 ha annually
– Recognition that rate ranges widely
• Recent assessment in program area shows 2.8% - 6.1%
2.8% deforestation rate
1986
2000
2011
6.1% deforestation rate
Over past 25 years average 4.3%/yr
Forest ● Shaded Cocoa /Secondary Forest ● No Shade Cocoa / Bush Fallow ● Agriculture ● Settlement ●
Cocoa Forest REDD+ Program
Ecological
Soil
Climate
E.R. potential
Agronomic
Dominant production
areas
Impact of inputs
Socio-Political
Grouping of Political
Districts with Cultural
importance of cocoa
Presence of programs, projects
Co-Benefits
Livelihoods
Biodiversity
Factors Influencing Selection of Proposed Area:
Soil
• Most important agronomic variable for cocoa.
• Current national production could be grown on ¼ current hectares cultivated
• Best soils are fertile, good organic content, good moisture retention, respond to inputs
• Other soil types are unsuitable
Current & Future Climate Suitability
Laderach et al 2012
Past & Present Cocoa Trends
Co-Benefits
Livelihoods
• 800,000+ cocoa farm families
• 30% of Ghanaians rely upon the sector
• Yield increases will have major poverty reduction impact
• Should cocoa decline due to climate change & loss forest ecosystem services, devastating livelihood impact
• Women represent approx. 50% of cocoa households, but disproportionately low access to cocoa resources
Biodiversity
• Program area encompasses national parks, GSBA, biologically diverse Forest Reserves
• Direct correlation between intensification and loss biological diversity on-farm
• Insects, soil fauna play critical role in pollination and maintenance of soil fertility
Time Frame & Accounting
Phases
• 20 year (2015-2035)
• Design Phase (2013-2015) • Complete R-Package
• In line with development of FIP projects
• Investment Phase (2016-2018)
• Performance Payments Phase (2019-2035)
Accounting
• Utilize national registry database being designed under R-PP to account for all AFOLU accounting
• Link to World Bank CARS system or VCS for international transactional accounting
Implementation Partners
Government Private Sector & Industry Bodies
Civil Society / NGOs
Cocoa Board (Cocobod) Banks National House of Chiefs
Forestry Commission Insurance Companies Traditional Authorities
MLNR Licensed Buying Companies
NGOs
MoFEP Chocolate Companies CREMA communities
MoFA Industry Foundations REDD+ Pilot Proponents
CRIG Certification Bodies Farmer Associations
District Assemblies Multilateral Development Institutions
Key Interventions
Institutional Collaboration
Cocoa Board, MLNR, FC
FIP has started
Needs to be expanded,
strengthened
Policy Reforms
Priority area
R-PP & FIP taking lead
Further reforms needed
Increase Yields
Primary focus of cocoa industry
Limited success
Happening in isolation
De-Risk Cocoa
Farming
Many risks for farmer
Expand access to credit
Need insurance
Landscape Planning
Total absence in cocoa sector
Policies largely in place
Need to implement
Data Management
Should be Cocoa Board
platform
Necessary for climate-smart
Manage sector data
In isolation, no single measure can be effective to increasing sustainability and achieving desired state.
Reference Emissions Level
• Historic approach
• 20 year program
• Above ground carbon pool
• Conservative deforestation rate of 2.3%
• Two strata
Intact Forest
• 120 tC/ha
• 845,000 ha
Shaded Cocoa
• 70 tC/ha
• 800,000 ha
Total Expected ERs 131,616,930.60 tCO₂ 50% program performance factor
Potential ERs
Social Environmental Impacts
• Three impact assessment procedures & requirements will be applied during program process: – R-PP describes clear process to assess impacts
– Strategic Environmental Assessment (SEA) procedures of EPA
– SESA requirements of MDB Will build off of processes conducted by R-PP and FIP initiatives
• Program development process to identify social and environmental impacts and assess co-benefits
• Where necessary, will prepare mitigation instruments
• Safeguard measures will be outlined
Scenario and MRV
• Ghana intends to follow VCS scenario 2 with crediting to jurisdiction and project levels.
• MRV system will be designed for tracking deforestation, degradation, forestation and enhancement of carbon stocks in program.
• Will be a sub-system of national REDD+ MRV system.
Financing
Preliminary estimates of the cost of Ghana’s ER Program over 20 years: US$ 2,067,000,000
Source US Dollars
FCPF R-PP funds 2,000,000
FIP funds 5,000,000
FCPF Carbon Fund 50,000,000
Private Cocoa Sector 2,000,000,000
Government of Ghana 10,000,000
Thank you